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The Model S is about to be joined by another addition to Tesla's lineup, one which is hoped to turn things around when it comes to the company's bottom line. Photo by Tesla

Tesla reportedly loses $4,000 on each Model S

Huge cash expenditures precede launch of Model X SUV

August 11, 2015

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Tesla is losing more than $4,000 on every Model S it sells, according to a report from Reuters. The electric automaker indicated that it had $1.15 billion in its cash reserves as of June 30th of this year, compared to $2.67 billion in June of 2014.

The revelation of per-unit losses was based on Tesla's own estimate of operating losses over time, putting a concrete figure on the amount the company loses with each car sold. The company had burned through $359 million last quarter during what was considered to be a favorable time for luxury vehicle sales.

News of the rapidly dwindling cash pile that Tesla needs to stay in operation came with Elon Musk's announcement that he wasn't ruling out the possibilty of selling more stock to shore up cash reserves. Given the fact that Tesla stock is approximately 70 percent higher than during the summer of 2013, the move would certainly present a viable short term solution amid the company's push to go from building and selling one model to producing several models by the first quarter of 2016.

We told you last week about Tesla's upgrade from Insane Mode to Ludicrous Speed, now available on the Tesla Model S, allowing the pure-electric sedan to make the sprint ...

The Tesla Model S starts at $70,000 for th 60 kWh model, while the 85 kWh model starts $10,000 higher. The Model S has been the automaker's sole offering since the Roadster exited production in 2012.

The company has been accepting orders for the Model X despite the fact that a price has not been confirmed for the SUV, though it is expected to be priced in the same neighborhood as the base Model S when it arrives in September 2015.

Tesla spent $831 million during the first half of this year to move the badly-needed SUV closer to production. Earlier in the year, Musk announced that per-unit profitability was one of the company's main goals for the remainder of the decade, in addition to the expansion of its model range and the reduction of production costs mainly by streamlining battery manufacture.